State Considers Outsourcing Lottery Operations

Indiana is evaluating bids from four private companies to manage its lottery.

Lottery sign

Photo: Alyssa Grimes

Indiana would be just the second state to give a private operator control of its lottery.

If Indiana follows through with its plan to hire a private company to manage its lottery, it will be only the second state to do so.

Hoosier Lottery spokesman Al Larsen says a business could bring more marketing, sales and financial management expertise than the state.

“A private vendor also has the ability to deploy significant resources and also assume some pretty substantial risk and do things on a rapid basis in a way that a state organization simply cannot,” Larsen says.

Illinois is the only state that currently has a private company managing its lottery. Illinois Lottery Superintendent Michael Jones says Indiana officials should look to his state for suggestions, but they also need to carefully consider what’s best for Indiana.

“If you go to any state in the United States that offers lottery products where its legal, you’ll find that somewhere around 80% of adults in that state think the lottery is a good thing,” Jones says.

So, Jones says, if states can harness that positive sentiment, they might not need to hire a private manager at all.

Four companies have placed bids for the job in Indiana. The Lottery Commission plans to make a recommendation to the state later this month on which company, if any, the state should hire to manage the lottery.

Gretchen Frazee

Gretchen Frazee is a reporter/producer for WFIU and WTIU news. Prior to her current role, Frazee worked as the associate online content coordinator for WFIU/WTIU. She graduated from the University of Missouri-Columbia where she studied multimedia journalism and anthropology. You can follow her on Twitter @gretchenfrazee.

View all posts by this author »

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Support For Indiana Public Media Comes From

Search News

Stay Connected

RSS e-mail itunes Facebook Twitter Flickr YouTube

Follow us on Twitter

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Recent Business & Economy Stories

Recent Videos

Find Us on Facebook